We read a news story recently about a Michigan house seller who was behind on her payments and knew she couldn’t keep up; she knew she had to sell the house. Apparently, she put her house on the market intending to do a short sale. She struggled to find a buyer, but after some time, one of the seller’s relatives decided to purchase the house. The offer was submitted to the bank.
The whole process seemed to be going smoothly, moving toward approval and closing, when the bank asked who was buying the house. The owner reported that a relative of hers was buying the house. This information forced the bank to closed the short sale file immediately and foreclose on the house.
Why did the bank immediately foreclose? Because short sales must be an “arm’s length transaction”. That means that the seller must have no relationship to the buyer and the seller may not have any undisclosed agreements with the buyer.
Banks are concerned that, if the buyer is related to or has any undisclosed agreements with the buyer, that the seller may be planning the short sale as a plan for moving back into the house or receiving cash or other perks on the side – somethings the banks consider to be the seller profiting from the sale.
Essentially, if the bank is taking a loss of tens of thousands of dollars on the short sale, they want to know that the former borrower is not benefitting or profiting while the bank is losing money.
This is just one example of many rules, procedures, and policies that may be tough to figure out when you’re dealing with a short sale. If this seller had consulted with skilled short sale REALTORS (The Veenstra Team), she would have been properly educated so that she would learn that a foreclosure probably could have been avoided by waiting for a different buyer.
If you are Kalamazoo homeowner that has experienced a hardship (divorce, medical problems, job loss) and you are behind on your house payments, give the Veenstra Team a call. We work with professional short sale negotiators who help homeowners avoid these hidden issues or obstacles. We offer these services free of charge and we maintain confidentiality, so let us provide you with the information that you need to make the best decisions for you and your family.
Phone: (269) 350-5514. CLICK HERE TO EMAIL US.
Providing Solutions for Home Owners in Distress
View Our homes for sale at www.VeenstraTeam.com.
The Veenstra Team specializes in helping homeowners STOP Foreclosure, and short sales in Kalamazoo Michigan.
Contact the Veenstra Team to STOP Foreclosure and short sales in any of the communities surrounding Kalamazoo; including Kalamazoo short sales, Portage short sales, Mattawan short sales, Oshtemo short sales among others. Of course, we are also able to help home buyers in the greater Kalamazoo area and home sellers in the greater Kalamazoo area purchase or sell any Kalamazoo homes, Kalamazoo income property, Kalamazoo Lake Homes, Kalamazoo Executive Homes, or Kalamazoo resort homes. We offer specialized services for Kalamazoo senior citizens and children with aging parents seeking Kalamazoo real estate information. We also offer free Kalamazoo relocation packets, Kalamazoo tours and specialized services for people who are moving to Kalamazoo. For families moving anywhere else in the US or Canada, we offer Free Nationwide Relocation Services and free REALTOR referral.
I would like FREE help from the Veenstra Team to buy a home!
I would like a free evaluation from the Veenstra Team so that I know how much my home is worth!